Tax on Relocating From Ireland

Posted in Good Advice, Income Tax, Taxation

Most advisory focus on residency and domiciliary issues relates to persons relocating to Ireland but of course the opposite also applies with relocating from Ireland.

  1. Irish Domiciled and Irish Resident

An individual is taxed on worldwide income and gains normally for the year of departure. Split Year Treatment only applies to employment income and can deem you non-resident from the date of departure.

  1. Irish Domiciled and Not Irish Resident but Ordinarily Resident

An individual is taxed on worldwide income and gains with the exception of;

  • Income from a trade, profession, office or employment where all of the duties are carried out outside of Ireland and
  • Other foreign income that is not more than €3,810.
  1. Irish Domiciled and Not Resident and Not Ordinarily Resident

An individual is taxed on Irish source income only.

If an individual relocated abroad to a low tax jurisdiction and operated through a foreign company, provided they are not Irish resident, then the income should be outside the scope of Irish tax. In terms of the year of departure and return, this needs to be carefully managed and professional advice sought.

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